ok here are some pics.. not as good as i had hoped, but maybe you guys can tell something.
You can see what happens when i let a buddy drive..
Wouldn't you know they film the rooster tail when i stand on it. lol (terrible sound, turn it down)

Chili,
Good looking ride

If you watch that vid, you will notice how "chunky" the rooster tail is...that is due to water being brought in by the reverse scoop and back out the nozzle...The rooster tail should be "fluffy" and misty due to the exit velocity.
The way I see it there are two options (or more)
First, I think the setup is really close, it airs out ok and seems to ride well...but the speed is low because of the velocity loss at the nozzle, the output of the nozzle is being choked up with all that extra volume...
One cheap and easy would be to remove the droop and go with a standard adapter to get the diverter out of the water. This may make the hull ride nose heavy and may not see any improvement in overall top end speed...
The other way would be to either try a satndard "R" nozzle or go with the later ride surface Diverter, obviously you will lose the adjustability with the "R", but may answer weather or not to spend the coin on a new Diverter (you could always sell yours on E-prey)..
These are just random thoughts and should be taken with a grain of salt, but betting I'm close.
GT